Corporate Tax Consultancy

Luthra Corporate Advisors: Your Trusted Partner for Corporate Tax Advisory Services in the UAE

Introduction to Corporate Tax in the UAE

The United Arab Emirates (UAE) has long been recognized for its business-friendly environment and favorable tax policies, which notably included the absence of a corporate tax. However, as part of its commitment to global tax standards and the need to diversify revenue sources, the UAE has undergone significant tax reforms in recent years, leading to the introduction of corporate taxation. This pivotal shift in the country’s fiscal policies reflects the UAE’s progressive approach toward building a sustainable and diverse economy.

Previously, the absence of corporate tax and various incentives played a pivotal role in attracting foreign investment and fostering economic growth in the region. However, to align with international efforts to combat tax avoidance and promote fair taxation, the UAE made the decision to implement corporate taxation.

On 9th December 2022, the UAE Ministry of Finance (MoF) issued the new Decree-Law No. 47 of 2022, known as the Federal Corporate Tax (CT). This legislation introduced a comprehensive framework for corporate taxation in the UAE, marking a significant milestone in the country’s tax landscape.

Effective from 1st June 2023, the corporate tax applies to all financial years commencing on or after that date and covers all Emirates of the UAE. It is applicable to all business and commercial activities conducted within the country. Companies operating in the UAE must fulfill their corporate tax requirements and meet their obligations and responsibilities.

It is important to note that the UAE CT focuses specifically on business and commercial income and does not apply to employment income or non-business income earned by individuals. This ensures that taxation is targeted at corporate profits rather than personal earnings.

Understanding the new Federal Corporate Tax and ensuring compliance with its rules is crucial for companies conducting business in the UAE.

How Luthra Corporate Advisors Can Assist You with Corporate Tax

At Luthra Corporate Advisors, we recognize the significance of adhering to tax regulations and their impact on businesses’ financial and operational aspects. Our dedicated team of experts provides personalized and comprehensive assistance, enabling you to concentrate on your core business operations while ensuring compliance with the UAE’s corporate tax requirements.

Our services include:

Analysis

• Conducting qualitative analysis to assess the impact of UAE CT and Transfer Pricing (TP) on your business.
• Performing quantitative analysis to evaluate the potential financial implications of UAE CT for your business.
• Identifying restructuring and optimization opportunities.
• Flagging the necessary system changes.

Implementation

• Amending contracts and other legal agreements.
• Reviewing and implementing required Transfer Pricing policies.
• Effecting changes to the legal and organizational structure.
• Seeking clarifications and tax rulings.
• Applying for CT groups and exemptions.
• Amending tax function and tax governance framework.
• Implementing system changes and updates.
• Conducting TP risk and opportunity analysis to determine necessary changes from a transfer policy perspective.
• Providing training and awareness sessions.

Post-implementation Support

• Assisting with Corporate Tax registrations.
• Submitting applications for tax group registration and exemptions.
• Preparing and submitting Corporate Tax returns.
• Compiling and submitting Transfer Pricing documentation.
• Offering tax accounting and provisioning support.

Corporate Tax Registration Services by Luthra Corporate Advisors

At Luthra Corporate Advisors, we specialize in providing professional Corporate Tax Registration services to help businesses comply with the Federal Decree-Law No. 47 of 2022, titled “Taxation of Corporations and Businesses,” also known as the Corporate Tax Decree Law, issued by the Ministry of Finance in the UAE.

Under Article 51 of the Corporate Tax Decree Law, it is mandatory for every Taxable Person to register for Corporate Tax within the prescribed timelines and obtain a Tax Registration Number from the Federal